Forum Discussion

HCAP's avatar
HCAP
Contributing User
3 years ago

Could his be a report error with Cost of Goods

I have just noticed when runnign a detailed general ledger report under COS 5'000 ledgers it is picking up sales against it. Am I missing something. i have looked at the inventory set-up and the I bu...
  • gavin12345's avatar
    gavin12345
    3 years ago

    Hi HCAP 

     

    This suggests you are using I Buy  I Sell and I Inventory for these items. The I Buy this Item Cost of Sales Account would be set to 5-1000. When you sell an Item, MYOB calculates the COGS amount and increases the COGS account and reduces the Inventory account - this is normal. The cost of the purchase is not expensed when you purchase, but rather when you sell - do a search on Perpetual Inventory v Periodic Inventory for a detailed explanation.

     

    Regards

    Gavin

gavin12345's avatar
gavin12345
Ultimate User
3 years ago

Hi HCAP 

 

This suggests you are using I Buy  I Sell and I Inventory for these items. The I Buy this Item Cost of Sales Account would be set to 5-1000. When you sell an Item, MYOB calculates the COGS amount and increases the COGS account and reduces the Inventory account - this is normal. The cost of the purchase is not expensed when you purchase, but rather when you sell - do a search on Perpetual Inventory v Periodic Inventory for a detailed explanation.

 

Regards

Gavin